May contracts of corn, soybeans and winter wheat were slightly lower Tuesday in quiet trading with no daily export sales announcement for a sixth consecutive day. May Minneapolis wheat posted a small gain with some concern about snow-covered areas in the Dakotas and Minnesota.
Midday: Row crops surrender early gains, with wheat still mixed.
Corn trade is 2 to 3 cents lower at midday with trade turning lower after failing to hold early gains. Midwest weather issues are hindering demand and movement, which will continue for a bit with a wet start to April expected.
South America crop progress should remain uneventful in the near term with Brazil trending drier for double crop corn. Ethanol margins have improved with production disruptions boosting producer margins with futures backing off their highs this a.m., while rising unleaded values help blender margins hold the line.
Corn basis will be mixed depending greatly on local conditions. The slow start to fieldwork will continue to be watched in the near term. On the May chart support is the 10-day at $3.69 which we are testing at midday, with the next level of resistance the 20-day at $3.72 3/4, which we failed to hold above today.
Soybean trade is 3 to 4 cents lower with trade still working to hold the $9.00 area. Meal is narrowly mixed and oil is 15 to 25 points lower. Trade news remained mixed with some sources hinting the final summit will be delayed until June.
South America weather should maintain the recent pattern in the coming days with Brazil harvest moving along and normal progress in Argentina. Crush margins remain strong overall with meal still hanging near $310 a ton.
On the May chart support is the $9.01 10-day moving average, with the 20-day at $9.09 the next level up which we remained just below.
Wheat trade is mixed with trade 3 cents lower to 3 cents higher with winter wheat giving up the gains again. Trade is still focused on oversold conditions with the large fund short remaining in place with planting season coming up for spring wheat, and weather likely to remain challenging.
Export news will be focused on in the near term with exports potentially slowing from the Black Sea area. Cooler than normal weather will keep wheat development slow on the plains. Wheat basis varies widely on product and location.
On the May Kansas City chart support is the 10-day at $4.33 which we remain just above, with the 20-day at 4.43 which we tested before failing.